Satellites Drive EU Soil Carbon Market Shift

Space-based monitoring under new EU rules aims to cut costs and improve oversight of carbon farming projects

18 Feb 2026

Europe’s soil carbon market is entering a new phase following the adoption of the Carbon Removals and Carbon Farming Regulation (CRCF), the bloc’s first comprehensive framework for certifying carbon removals.

Under Regulation (EU) 2024/3012, monitoring, reporting and verification (MRV) systems are expected to play a central role in ensuring that carbon farming projects meet common standards. Satellite-based monitoring is emerging as a key tool in that effort, offering a way to track agricultural practices across large areas with greater speed and consistency.

Traditionally, soil carbon projects have relied on field visits and manual sampling, processes that can be costly and time consuming. Satellite imagery now allows developers to observe practices such as cover cropping and reduced tillage across thousands of farms. Companies including Denmark-based Agreena use earth observation data to monitor land management changes and support carbon credit issuance.

Proponents say satellite-enabled MRV could lower verification costs and enable projects to scale, depending on the methodology applied and the integration of on-the-ground data. Faster data processing may also shorten the time required to issue credits, a factor as demand grows for carbon removals aligned with EU standards.

The European Space Agency has backed initiatives aimed at strengthening transparency in carbon monitoring through satellite data. Earth observation systems provide regular coverage across agricultural regions, offering consistent insights into land use patterns. For institutional investors considering carbon credits as an asset class, such visibility may reduce perceived risk.

Scientific limits remain. Satellites cannot directly measure soil carbon stored underground. Estimates rely on models calibrated with ground samples, which continue to be required for validation and regulatory compliance. Data quality can also vary due to weather conditions, cloud cover and regional differences.

As the CRCF framework develops, further guidance is expected on methodologies and reporting requirements. Market participants face the task of aligning digital monitoring systems with regulatory standards to avoid overstated claims.

The expansion of satellite-supported MRV suggests that Europe’s carbon farming market is moving towards more standardised and data-driven oversight, with credibility likely to determine long-term participation and investment.